Extrinsic vs. Intrinsic Motivation

We spoke more of this in the “Motivation” section of this course, but as a refresher, remember that rewards and motivation fall into two core categories: “extrinsic” motivation, wherein an individual engages in a task or behavior for “external” reasons (such as fear of termination, or getting a bonus), and “intrinsic” motivation, wherein an individual engages in tasks/behaviors due to feelings or goals coming “from within” (such as, simply, the desire to do a good job, or the pleasure gained from being able to show off the work to friends and family, and so on). By their very nature, rewards like the ones being discussed in this section are “extrinsic,” and as such, less effective than the “intrinsic” rewards that (we hope) come along with the work.

That said, however, it is possible to “tap into” the intrinsic motivation of team members, if we are aware of what that intrinsic motivation is and how it carries into their work. Some factors that promote intrinsic motivation include:

• Curiosity. Curiosity pushes us to explore and learn for the sole pleasure of learning and mastering.
• Challenge. Being challenged helps us work at a continuously optimal level work toward meaningful goals.
• Control. This comes from our basic desire to control what happens and make decisions that affect the outcome.
• Competence. We look for ways to improve skills, whether work-related or not. (This is sometimes in conjunction with “control,” since improved skills give us more control over our ability to make good decisions to affect the outcome.)
• Recognition. We have an innate need to be appreciated and get satisfaction when our efforts are recognized and appreciated by others. (This does not always mean “public recognition”—however, learning that I have earned the respect of colleagues I admire can mean much, much more than the applause at a company all hands, for example.)
• Cooperation. Cooperating with others satisfies our need for belonging. We also feel personal satisfaction when we help others and work together to achieve a shared goal.
• Competition. Competition poses a challenge—whether internal, such as “can we overcome this obstacle?” or external, such as “can we accomplish an outcome before another team?”—and increases the importance we place on doing well.

Again, not everyone holds these intrinsic factors equally strongly—personally, I care less for recognition than I do challenge, for example—but as you get to know your team, look for what factors are at work inside each team member’s head, and which factors resonate more strongly with them.

As you read through the rest of this chapter, you’ll notice that several of the rewards are extrinsic in nature—often of the monetary compensation form—but many are intrinsic, and/or using social currency, and as such can be just as valuable, if not more so. You’ll also notice that many, if not most, of the extrinsic/monetary rewards are those that must be approved by the company’s leadership or HR processes, while the intrinsic/social rewards are often “informal” and ones you can hand out yourself.

Lastly, don’t rely too much on any one reward, or it loses its impact. Praise in front of the team feels good the first few times, but after a while it loses its impact and sounds insincere. Similarly, repeated spot bonuses (assuming you can get the approval for that many) can easily start to move from “reward” to “expectation” if they become too predictable.